Subsection (1) is subject to subsections (2) and (2A).

F3Where the liability arises by reason of the payment of a relevant lump sum death benefit it is a liability of the person to whom the lump sum death benefit is paid.

Where the liability arises by reason of a designation mentioned in the description of benefit crystallisation event 5C, F5or by reason of a person becoming entitled to an annuity as mentioned in the description of benefit crystallisation event 5D, it is a liability of the dependant or nominee (as the case may be).

The person liable under subsection (2) or (2A) to the lifetime allowance charge charged by reason of the occurrence of any one of the relevant post-death benefit crystallisation events is liable to such portion of the total amount of the tax payable by reason of the relevant post-death benefit crystallisation events having occurred as appears to an officer of Revenue and Customs to be just and reasonable.

For the purposes of subsections (3) and (4), a benefit crystallisation event is a “relevant post-death benefit crystallisation event” if it is benefit crystallisation event 5C F7, 5D or 7.